If you’re on the committee of an owners corporation, or are simply an owner who is a part of one, you might sometimes feel like you’re drowning in legalese. But understanding the most important owners corporation terms is critical, because you’ll often be making consequential decisions as a group.
At Above OCM we live and breathe owners corporations. Our job is to keep them running like clockwork, and a big part of that work is helping owners and committee members to understand the rules and their responsibilities.
In this guide we’ll be taking a closer look at resolutions.
What is an owners corporation resolution?
Resolutions are formal decisions voted on by owners or the committee. They concern the management, maintenance and administration of the shared property.
Under the Owners Corporations Act 2006, resolutions come in three flavours: ordinary, special and unanimous. Let’s break down what each means, and how they affect the management of a Victorian owners corporation.
Ordinary resolutions: for everyday decisions
Ordinary resolutions form the backbone of owners corporation decisionmaking.
How they work: Ordinary resolutions require a simple majority of votes cast by owners at a general meeting, committee meeting, or by ballot.
When they’re used: Ordinary resolutions are used for day-to-day admin and decisionmaking. Examples include amending an approved maintenance plan, financing regular but urgent repairs, and voting in committee members.
Special resolutions: for big decisions
If bigger decisions need to be made, a special resolution may be required, to ensure any significant change has significant support.
How they work: Special resolutions require approval from 75% of either the total lot entitlements (for polls and ballots) or the total votes received (for meetings and other situations).
We’re leaving out a couple of pages’ worth of specifics on ‘interim special resolutions’ here, which can be found in the Owners Corporations Act 2006, but the three-quarter majority rule is the key one to know.
When they’re used: Special resolutions are used for any big alterations to the use or appearance of common property, borrowing large sums of money, or undertaking legal proceedings beyond civil disputes.
Unanimous resolutions: for fundamental decisions
If a change will fundamentally restructure the owners corporation, the property, or the owners’ relationship with it, it may require a unanimous resolution.
How they work: As the name suggests, unanimous resolutions require 100% agreement from the total lot entitlements (every owner) covered by the owners corporation.
When they’re used: These are rarely used, as they are reserved for structural decisions like selling off a piece of shared land, altering lot boundaries, agreeing that each owner will take out their own property insurance, or dissolving the owners corporation entirely.
Above OCM: Resolving to simplify management
With even the most basic owners corporation decisions needing a majority of voters to agree, confident leadership and transparent communication are key to getting anything done within a shared property.
That’s precisely the high standard of management that we deliver at Above OCM. We help you understand which resolution is appropriate for a given situation, we ensure that everything is done by the book, and as a result, we help your community move forward with clarity, confidence, and as much of a consensus as possible.
If you’re looking for help handling the administration, management and compliance of your owners corporation, we’re ready to offer it.
Get in touch with our friendly team today.
